4)in the period 2011, Lott Inc. performed services for $120,000 and billed its

customers. The company subsequently collected $82,000 of the amount billed. Lott incurred $75,000 of operating expenses but paid cash for only $62,000 of that amount. Lott acquired $30,000 cash from the issue of common stock. The company invested $18,000 cash in the purchase of land. What is the amount of net income for the period?

a $20,000

b $7,000.

c $27,000.

d $45,000.

8)In the period 2011, Lott Inc. performed services for $120,000 and billed its

customers. The company subsequently collected $82,000 of the amount billed. Lott incurred $75,000 of operating expenses but paid cash for only $62,000 of that amount. Lott acquired $30,000 cash from the issue of common stock. The company invested $18,000 cash in the purchase of land. What is the amount of revenue that will be recognized on the income statement for the period?

$82,000.

$45,000.

$20,000.

$120,000.